US 10-Year Treasury Yield Continues to Rise, Fed Awaited

The yield on the US 10-year Treasury note rose for a third straight session to 4.39% on Wednesday, the highest level in over a month, as investors awaited the Fed’s monetary policy decision later in the day. Oil prices also continued to climb, with no signs of a near-term agreement between the US and Iran to end the conflict and reopen the Strait. While the Fed is widely expected to keep the federal funds rate unchanged, attention will focus on updated guidance, the economic outlook, and the impact of the conflict on policy prospects. Meanwhile, the Justice Department said it would halt its criminal investigation into Powell, removing a key hurdle to the Senate’s confirmation of his nominated successor, Kevin Warsh.

US 10 Year Government Bond Yield increased to 4.39%, the highest since March 2026. Over the past 4 weeks, US 10 Year Note Bond Yield gained 3.50 basis points, and in the last 12 months, it increased 21.60 basis points.

The yield on the US 10-year Treasury note held its recent advance near 4.35% on Wednesday as investors positioned ahead of the Federal Reserve’s upcoming policy decision, which is expected to be Chair Jerome Powell’s final meeting before his term ends in May. The Fed is widely anticipated to keep interest rates unchanged, though markets will closely assess policymakers’ views on the economic impact of escalating tensions in the Middle East. Central banks in the EU, the UK, and Canada are also set to announce policy decisions this week, while the BOJ delivered a hawkish hold on Tuesday. Meanwhile, stalled US-Iran negotiations and the continued closure of the Strait of Hormuz have kept inflation concerns elevated, contributing to upward pressure on Treasury yields. President Donald Trump was reportedly dissatisfied with Tehran’s latest proposal, insisting that nuclear issues be addressed from the outset of any agreement.